In Theory: Qatar's bid a game-changer

The expected outcome of the race to host the Fifa Football World Cup is significant not only in a sporting context but from other points of view as well, such as the economy. This justifies the fierce competition between rival bidders for hosting the event, which helps the host nation capture the attention of the world for a reasonable period of time.

Immense joy accompanied the announcement that Qatar had been chosen as the host for World Cup 2022, which paves the way for a qualitative shift in the country's sporting scene and economy during the coming decade. We will try to focus on the economic benefits for Qatar from the football showpiece.

Firstly, one has to admire the bold step taken by Qatar in submitting a bid despite challenges presented by the regulatory framework, climate and demographics and having to compete against bids from countries like the United States and Japan. This demonstrates Qatar's spirit of initiative, self-confidence and ability to overcome difficulties.

From an economic perspective, Qatar will be able to attract investments ranging between $15 billion (Dh55 billion) to $20 billion that will be pumped into its economy, especially in its sports infrastructure. This will lead to massive development, placing Qatar at the forefront of those countries that enjoy a highly advanced infrastructure.

At the same time, the vital services sector will also get a big boost with the development of tourism and hospitality establishments besides transportation and telecommunication services, which account for a significant portion of the Gross Domestic Product (GDP) for many countries around the world. The event could also be instrumental in the diversification of sources of national income.

Human resources

Regarding the development of human resources, Qatari youth will have the perfect opportunity to receive specialised training and the country will gain valuable skills in managing public utilities and organising global events. This will qualify Qatar for hosting other global events which, in turn, will help it corner more economic returns given that the establishments and utilities that will be built specifically the World Cup will position it nicely for other high-profile global events.

It is true that the big part of the funding will be provided for by Qatar. However, investments made for this event will indirectly bring in financial profits for the Qatari economy in the form of visitors besides assuring global exposure.

Many sectors will benefit from the event, the aviation sector being one. Qatar Airways will be among companies that will stand to make big profits, especially with the carrier extending its reach in all continents.

Tourism benefits

The tourism and hospitality sector, which is playing an increasingly important role in global economies, will also benefit from the event. It is expected that Qatar will turn into a tourist hotspot during and after World Cup 2022 thanks to high-quality services on offer.

Relying on these sectors, the trade sector is also expected to achieve significant growth due to rising global interest in Qatar's economy, and also due to an anticipated increase in demand for various products and services in the coming years, especially those required for carrying out new projects vital to the World Cup. Qatar will also gain invaluable global media coverage.

Alternative energy

However, the most important advantage — which was highlighted in Qatar's bid — is related to some of the country's approaches for developing sources of alternative and environmentally friendly energy, especially solar energy, which will be used to create conditions amenable to sports at the 12 main venues despite the hot weather. This approach will allow Qatar to establish a permanent centre for developing sources of alternative energy, which is considered the ideal and long-lasting alternative for the post-oil era.

Therefore, winning the bid to host World Cup 2022 is not just a sport related achievement, but also an economic, social, and cultural one, as people from different cultures around the world will get together in one location. This is considered a great achievement for Qatar, the Gulf Cooperation Council besides other Arab countries and the Middle East in general. The fact that it is the first time a World Cup will be hosted in the Middle East since the first competition took place in Uruguay 90 years ago is testimony to that.

Dr. Mohammad Al Asoomi is a UAE economic expert.